Tesco’s former commercial director Kevin Grace is suing the supermarket giant for alleged unfair dismissal in the wake of its profits scandal.

Grace, who lost his job when it emerged that Tesco overstated its profits back in September 2014, is said to have been accused of gross misconduct and serious negligence by the retailer.

However, Grace insists he was not responsible for the £263m hole in Tesco’s accounts and claims his dismissal was unfair.

According to The Sunday Times, he is suing the grocer over the loss of earnings and benefits, totalling more than £600,000.

Grace was allegedly sacked with four days’ notice via a letter, in which he was accused of “remaining silent” over accounting issues.

His lawyers claim that the allegations were “misconceived” and that Grace “responded appropriately” as the scandal emerged.

A writ issued on Grace’s behalf reportedly states: “Mr Grace’s role involved no responsibility for, or significant involvement with, Tesco’s internal financial functions, internal audit functions or with Tesco’s external audit process.

“He had no responsibility or authority for approving or signing off internal management accounts or external audited accounts or deciding the time that any financial costs or benefits were accounted for.”

A Tesco spokesman said: “We are aware of this case and intend to strongly defend it, but are not able to comment otherwise.”

Three former Tesco executives are currently on trial over their alleged role in the £263m profit overstatement.

All three defendants – former managing director for Tesco UK Christopher Bush, ex-UK finance director Carl Rogberg and John Scouler, the grocer’s former UK food commercial director – deny the charges of fraud and false accounting.

The trial is expected to last beyond Christmas.